Question
Dus Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering
Dus Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $400 per month plus $89 per job plus $10 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in March to be 11 jobs and 81 meals, but the actual activity was 7 jobs and 76 meals. The actual cost for catering supplies in March was $1,810. Required: The activity variance for catering supplies in March would be (round to nearest dollar and identify F or U, favorable or unfavorable):
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